I want to generate corpus for my kids education and our retirement in next 10-15 years. So planning to start monthly 30K SIP in below mutual funds with Index fund
(3000)SBI Bluechip
(3000)SBI Large and Midcap
(5000)Parag Parikh Flexi Cap Fund
(4000)Motilal S&P 500 Index Fund
(4000)ICICI Nifty Next 50 Index Fund
(4000)UTI Nifty 50 Index Fund
(4000)Motilal Oswal Nifty Midcap 150 Index Fund
(3000)Nippon India Nifty Smallcap 250 Ind
But I feel options are more, so please suggest. Thanks in Advance.
Just looks too many funds honestly… I would just put 15k in Smallcap Index Fund
5k each in NYSE FAANG ETF Fund of Funds, Nifty 50 & Midcap Index Fund
NYSE just for slight diversification outside of INR denominated cos
from my little experience with mutual funds I would say 8 mutual funds is big number and keep it less.
Also compare two mutual fund holdings and see overlap of stocks is very less
I compared SBI Bluechip with SBI Large and Midcap
here overlap is more what I feel…
>Mutual Fund Portfolio Overlap | Advisorkhoj, India
Just put everything in Parag Parikh Flexi Cap Fund and forget the rest. One fund is enough for both small cap and international diversification.
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I feel quant mf is the top fund. Quant small cap, quant manufacturing and infra funds are doing good.
Quant is top performer in all the sector with top ranking also. Small cap have 5 yr cagr of 39 percentage.
I have follow some stock advisory services and quant small cap beats all most all advisory services.
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I am a SEBI certified Equity Research Analyst, If your horizon is 10-15 years, you may focus on small and midcap, out of 30K, you can use considerable fund, then a flexi cap, diversification also very imp, you mentioned a index fund, but as per your risk apatite diversify equity and fixed assets (Debentures) funds, like 60% equity 40% (Debentures) fixed assets, so that in tough times of market your portfolio is well balanced compared to benchmarks in which you invest.
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I had invested in parag parekh but it underperformed the market for some time and then there were restrictions on buying foreign equity. Have the restrictions been lifted?
Actually we can not say it as restriction because SEBI set capping on buying foreign equity and Parag Parekh fund’s buying of foreign equity is already heavy, that is the effect of capping and not the restrictions, I hope this might be helpful
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Yes, I understand that. What I mean is, it is unfortunately not possible to participate in the global stocks through PPFAS, and that’s a big loss for investors like me who don’t know how to buy foreign companies like Tesla and NVidia
Don’t regret Sandipji, as Next Decade is of India, now USA investors are investing in India, believe in India, you will get amazing returns, if your stock selection is good, don’t go with developed economies, growth is limited, try to find developing economies for investments
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Thanks for information. I will make changes to portfolio accordingly
I think the most important thing would be the time horizon, if it is 10 years or more then I personally think one should get heavy in smallcap and midcap funds with little allocation to large cap or index fund and one suggestion is that for Smallcaps and midcaps don’t go with index funds because smallcap and midcap are game of identifying first and once they are into the index they generally become popular and starts underperforming.
Also Do remember that I’m not an expert in mutual funds as I’m into equities directly but if had to do sip of 30 thousand with a time horizon of 10 years or more with medium risk appetite then here are the funds with allocation in which I will invest
1. Parag Parikh Flexi Cap Fund - 7000
2. Quant smallcap Fund - 6000
3. Hdfc Midcap fund - 5000
4. Invesco India Infrastructure Fund - 4000
5. SBI bluechip fund - 4000
6. Icici Nifty 50 fund - 3000
7.Motilal oswal Microcap 250 index fund - 1000
P.s: I’m not sebi registered.
All funds underperform from time to time. The returns of quant small cap fund was very average before corona. Recent performance lead to high CAGR but one has to stay the course during underperformance period. Parag Parikh had a relatively smooth upward graph throughout. The restrictions have not been lifted and they still are performing consistently. This shows their robust investing strategy. The consistency of returns helps investors to stay invested during downturns.
You are right. My point was that the restrictions on buying foreign equity came at the wrong time because it didn’t let PPFAS investors take advantage of the fall in Nasdaq. PP remains an excellent fund, otherwise.
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parag parikh is not doing any better in any of its fund category.
Even quant flexi cap is doing better than Parag.
Quant started only in 2018.
I feel last 5 year quant is doing extremely well in all category. Before that we have sbi small cap which is doing not good now., Mirae elss but quant is much better. Axis small cap and AB cap mid cap etc but quant is better in all segment.
Quant vs parag flex cap
Quant Flexi Cap Fund started in 2008. Parag Parikh has more consistent upwards growth than Quant. Quant has performed well recently but one has to ask if they can survive the long period of irregular growth to get the benefit of this recent performance.
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Escort mutal fund was bought by quant in 2018.
As of March 31, 2024, Quant Mutual Fund has assets under management (AUM) of ₹65,942.93 crore
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Quant’s investment philosophy is characterized by
1- Picking stocks/sectors showing earning momentum or/and valuation gap
2- Faster churn of the portfolio (maximum holding of the stocks is less than 2 years)
3- Not much weightage given to quality of business or management
I have been monitoring their portfolio for last two years and see frequent overhaul in stock compositions or allocations from one quarter to another. One would hardly recognize the portfolio today from 1 year ago. The whole operation looks more like a trading house, constantly churning into and out of stocks booking profits and redeploying cash in the new game.
Historically Quant’s investment approach hasn’t been proven to be sustainable or scalable (regardless of what their management may claim). As their AUM grows, they will be challenged by impact+transaction cost of frequent churn offsetting their outperforming gains.
Parag on the other hand is more long term and fundamental driven investors with a more stable portfolio which could be preferred by long term investors.
Given that both Quant and Parag funds have been in limelight in recent times due to peer and index-beating returns, there is something interesting about their portfolio composition. Their biggest holdings today are two stocks that have been at the center of attention of late: Reliance and HDFC bank respectively.
So far Quant has been proven right with their call, RIL giving 30% return since their increase in allocation. HDFC on the other hand has been a disappointment. Quant management has explicitly given HDFC a thumbs down while talking up Reliance prospects. It will be interesting to see if Quant reverses their stance when HDFC stock fortunes turn around.
Disc- Neither invested in any of them.
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Yes, earlier Parag persisted with ITC and it kind of paid off. For some time now they have been holding on to HDFC Bank, in fact they started accumulating HDFC pre merger. Interesting to see what happens to both the funds
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